> the free market can't really be deemed an ideology
The free market isn't an ideology much like money isn't an ideology. Putting the free market in charge of certain aspects of society however is very much an ideological decision, though. Ideology doesn't stop being ideology just because you agree with it (although there are certainly plenty of political candidates throughout history who claim to not adhere to any ideologies). For example anarchists are somewhat open to market economies while state communists usually advocate for central planning and libertarians are strongly in favor of free market maximalism, believing that for a free market to work at its best it needs to be free of all regulations (tho usually still maintaing some rule of law to prevent a real world equivalent of EVE Online's corporate warfare).
I'm not saying privatization is good or bad, I'm just saying that the underlying ideology of the past decades in Germany has been that we should privatize as much as possible and where privatization is not possible we should at least reproduce a free market system as closely as possible (e.g. we have multiple competing public healthcare providers despite having strict regulations that mean they all provide very similar levels of care).
> Many states do this.
We do have people in government agencies "doing cyber". We just don't have a government owned software development department developing malware for government agencies to use, just like we don't have a government owned weapons manufacturing department developing weapons for the police and military.
We do have the government owning shares (even majority shares) in private (or rather publicly traded) companies though. But often these are in privatized branches of the government (e.g. Deutsche Bahn) or companies that are naturally monopolistic. Buying out a private software development company would go against the spirit of the free market as it would eliminate competition.